The U.S. Economy Likely To Strengthen In 2017, According To Decision Analyst’s Economic Index

Arlington, Texas—The Decision Analyst U.S. Economic Index entered 2017 at 114 (January 2017), a 7-point increase from January 2016. This year-over-year increase in the Economic Index signals continued U.S. economic growth during the first half of 2017. The Economic Index tends to lead U.S. economic activity by 6 to 12 months. Below is the past-10-year history of the U.S. Economic Index.

“The overall trend of the U.S. Economic Index over the past few months suggests that 2017 will likely get off to a positive start,” said Jerry W. Thomas, President/CEO of Decision Analyst. “However, the change of political power in Washington carries with it risks of economic distractions and economic turmoil. Disruptions in the flow of imports and exports could have major negative effects on the U.S. economy if the Trump administration pursues trading restrictions, and the possible cancellation of the Affordable Care Act likewise carries economic risks. A continuing drag on the economy is the failure of large U.S. corporations to adequately invest in new equipment, new products, new people, and new facilities. We continue to believe that higher rates of interest would be good for the U.S. economy long-term,” said Thomas. “More normal interest rates would help reduce corporate financial engineering and would reduce speculative investments in marginal opportunities.”